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For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Harita Seating Systems Limited (NSE:HARITASEAT) useful as an attempt to give more color around how Harita Seating Systems is currently performing.
Check out our latest analysis for Harita Seating Systems
Commentary On HARITASEAT’s Past Performance
HARITASEAT’s trailing twelve-month earnings (from 31 March 2018) of ₹376m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 30%, indicating the rate at which HARITASEAT is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is only owing to industry tailwinds, or if Harita Seating Systems has experienced some company-specific growth.
In terms of returns from investment, Harita Seating Systems has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.1% exceeds the IN Auto Components industry of 7.6%, indicating Harita Seating Systems has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Harita Seating Systems’s debt level, has increased over the past 3 years from 15% to 29%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 43% to 10.0% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Harita Seating Systems gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Harita Seating Systems to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for HARITASEAT’s future growth? Take a look at our free research report of analyst consensus for HARITASEAT’s outlook.
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Financial Health: Are HARITASEAT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.